Return of sham gold by Muthoot alleged

published on April 3, 2012

A Delhi court has sought a probe report from the police on a complaint accusing Muthoot Fincorp, a non-banking financial firm giving loans against gold, of returning sham gold in place of genuine metal to one of its customers after clearance of his loan.
“Let a report in this regard be called from the station house officer of the Desh Bansdhu Gupta Road police station,” Chief Metropolitan Magistrate Vinod Yadav said.

The court called for a police report on a complaint against the firm and its Chief Managing Director Thomas John Muthoot, Director Thomas George Muthoot, its branch manager, sales executive, vice president (Vigilance) and Vice President (Operation) at the relevant time.

The police had earlier registered an FIR under sections 420 (cheating) and 406 (criminal breach of trust) of IPC on a complaint by West Delhi resident Sachin Gupta.

Gupta told the court that the “police is not investigating the matter properly and that the persons named in the FIR are not being arrested.”

He has, in his complaint, said he pledged a total of 252 gm of gold in form of its several coins of varying weight for a loan and after its repayment, he was handed over his coins by a company’s sales executive in a sealed pack.

He said later in October 2011, when he wanted to sell those coins, the proposed purchaser gave him the rude shock telling him that all his coins were sham, made up of iron with mere gold polish. He alleged on a double check, a bank in Faridabad confirmed his worst fears and said the coins he was handed over by Muthoot Fincorp were fake.

As Gupta approached the Muthoot Fincorp branch manager, he allegedly shunned all responsibility.

Gupta told the court that till date, he has not recovered his genuine gold items he had pledged for the loan.

Gupta also said the police is not taking any legal action against the company officials on the pretext that they are not liable in the case and added that all persons named in his complaint are liable to be prosecuted as all dealings took place under their control.

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